MIAMI--(BUSINESS WIRE)--Feb. 11, 2016--
World Fuel Services Corporation (NYSE:INT) announced today that a
wholly-owned subsidiary of the company has signed a definitive agreement
to acquire from certain ExxonMobil affiliates their aviation fueling
operations at 83 airports in Canada, the United Kingdom, Germany, Italy,
Australia and New Zealand. Further, an additional three locations in
France are expected to be added to the definitive agreement subject to
certain required reviews associated with such transaction. The portfolio
services the business and commercial aviation sectors and is comprised
of certain related on-airport assets and operations. World Fuel will
also enter a long-term agreement with Imperial Oil to become a wholesale
distributor for general aviation fuel in Canada.
The total purchase price, including the French locations, of
approximately US$260 million is expected to be fully funded with
cash-on-hand.
The transaction will close in phases, with the majority of locations
expected to close during the second half of 2016. The transaction is
subject to customary regulatory consents and closing conditions,
including securing appropriate third party consents.
“This acquisition represents a strategic expansion of our global
aviation network, further embedding us in the supply chain, by acquiring
best-in-class aircraft fueling operations in multiple key international
markets,” stated Michael J. Kasbar, chairman and chief executive officer
of World Fuel Services Corporation.
“Our strong cash flow profile should enable us to fund this acquisition
with cash-on-hand, leaving our existing liquidity facilities available
to fund organic growth and additional strategic investments,” said Ira
M. Birns, executive vice president and chief financial officer.
Excluding the impact of one-time acquisition-related expenses and
amortization of acquired intangible assets of approximately $10 million
and $7 million respectively, the transaction, including the French
locations, is expected to be $0.32 to $0.36 accretive to earnings on a
Non-GAAP basis in the first twelve months after full completion.
Non-GAAP Financial Measures
This press release includes selected financial information that has not
been prepared in accordance with accounting principles generally
accepted in the United States (“GAAP”). Specifically, we have used
non-GAAP accretion to earnings per share, which excludes one-time
acquisition-related expenses and amortization of acquired intangible
assets, primarily because we do not believe they are reflective of the
company’s core operating results. We believe that this non-GAAP
financial measure, when considered in conjunction with our financial
information prepared in accordance with GAAP, is useful to investors to
further aid in evaluating the ongoing financial performance of the
Company and to provide greater transparency as supplemental information
to our GAAP results. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. In addition, our
presentation of non-GAAP accretion may not be comparable to the
presentation of such metric by other companies. Investors are encouraged
to review the reconciliation of this non-GAAP measure to its most
directly comparable GAAP financial measure contained in this press
release.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding our expectations about the effect of the
acquisition on our aviation segment, the addition of the locations in
France, our liquidity and our expectations regarding the effect of the
transaction on our earnings, the timing for closing and funding of the
purchase price. These forward-looking statements are qualified in their
entirety by cautionary statements and risk factor disclosures contained
in the company’s Securities and Exchange Commission (“SEC”) filings,
including the company’s Annual Report on Form 10-K filed with the SEC on
February 12, 2015. Actual results may differ materially from any
forward-looking statements due to risks and uncertainties, including,
but not limited to: our ability to obtain required consents and satisfy
closing conditions, our ability to effectively integrate and derive
benefits from the acquisition, our ability to capitalize on new market
opportunities, potential liabilities, limited indemnities and the extent
of any insurance coverage, the outcome of pending litigation and other
proceedings, the impact of quarterly fluctuations in results, the
creditworthiness of our customers and counterparties and our ability to
collect accounts receivable, environmental and other risks associated
with the storage, transportation and delivery of petroleum products, our
failure to effectively hedge certain financial risks associated with the
use of derivatives, non-performance by counterparties or customers on
derivatives contracts, loss of, or reduced sales, to a significant
government customer, uninsured losses, the failure of fuel and other
products we sell to meet specifications, fluctuations in world oil
prices or foreign currency, changes in political, economic, regulatory,
or environmental conditions, adverse conditions in the markets or
industries in which we or our customers and suppliers operate, the
impact of natural disasters, adverse results in legal disputes,
unanticipated tax liabilities, our ability to retain and attract senior
management and other key employees and other risks detailed from time to
time in the company’s SEC filings. New risks emerge from time to time
and it is not possible for management to predict all such risk factors
or to assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, changes in
expectations, future events, or otherwise.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global fuel
logistics, transaction management and payment processing company,
principally engaged in the distribution of fuel and related products and
services in the aviation, marine and land transportation industries.
World Fuel Services sells fuel and delivers services to its clients at
more than 8,000 locations in more than 200 countries and territories
worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, residential and government accounts. The
company also offers transaction management services which consist of
card payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211005351/en/
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, Executive Vice
President & Chief Financial Officer
or
Glenn Klevitz,
305-428-8000
Vice President, Assistant Treasurer
